Which of the Following Is an Example of Opportunity Cost

question 192

Multiple Choice

Which of the following is an example of opportunity cost not measured by money cost?

• A)the time spent eating a business lunch at a restaurant 
• B)the time spent preparing a meal eaten at home 
• C)the time spent studying to obtain an "A" in economics 
• D)the time spent repairing a car in one's own garage 
• E)All of the above are correct.

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Definitions:

Required Return

The minimum expected return by investors for investing in a particular security or project, taking into account the risk associated with it.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to analyze the profitability of a projected investment or project.

Mutually Exclusive Projects

Projects that, when considered by a business, only one can be chosen as they compete for the same resources.

Straight-line Depreciation

A process for dividing the price of a tangible property into uniform yearly portions throughout its operational life.